Hitch delays new car deliveries
A last-minute hitch to the Government's "cash for bangers" car scrappage scheme has delayed delivery of cars from leading firms including Ford and Honda.
Dealers were told not to register any new vehicles because of issues such as VAT payments and other details said to have emerged late in negotiations between the industry and the Government.
Prime Minister Gordon Brown said the scheme, under which owners of cars and small vans more than 10 years old will get £2,000 off the price of a brand new vehicle when scrapping their old motor, will prove to be a great help to the British vehicle industry.
The Government and manufacturers are sharing the cost of the scheme, which will last until the end of February 2010 or until the £300 million Government funding runs out.
But as the scheme was being launched, last-minute problems were emerging which held up delivery of new cars.
A spokesman for Ford said: "Ford has been part of negotiations between the Government and all vehicle manufacturers on the vehicle scrappage scheme announced in last month's Budget. As a significant employer and investor in the UK, Ford remains committed to this scheme to stimulate sales within the sector and help protect jobs.
"Based on details which have only become apparent late in these negotiations, Ford is working to resolve some outstanding administrative issues but is confident it can begin sales within a few days of the official start date.
"Detailed information on the scrappage scheme was not included in the Budget. However, Ford as leader of the UK vehicle market welcomed it on behalf of customers, industry employees and also for its safety and environmental benefits.
"All manufacturers planning to participate in the scheme have been looking at the precise mechanism for funding their £1,000 contribution towards the total £2,000 incentive offered in return for trading in a 10+ year-old vehicle, and discussions with the Business and Enterprise Department have been ongoing since the Budget."
A Honda spokesman said its dealers had been told not to register any cars under the scheme until there was "clarity" on a number of outstanding issues.
